Nathan and Joanne T. Cummings v. Commissioner of Internal Revenue

IRVING R. KAUFMAN, Chief Judge:

The interplay of two distinct statutory schemes often gives rise to some engrossing legal questions. In this ease, we are called upon to consider the relationship of the Internal Revenue Code and the securities laws — in particular, the proper tax treatment of a payment made in satisfaction of an apparent liability under § 16(b) of the Securities Exchange Act.1 We find that the policies of both statutes support the determination of the Commissioner of Internal Revenue that § 16(b) repayments should be treated as long term capital losses, and reverse the decision…